Oil Holds Gains After Drone Attack Fails to Disrupt Saudi Output

Crude held gains after a drone attack on oil and gas facilities in Saudi Arabia underscored geopolitical risk in the Middle East and as investors assess signs of progress in trade negotiations with China.

Futures on Monday were little changed after climbing 0.7% on Friday. Saudi Arabian Oil Co. said oil operations weren’t interrupted after a small fire was extinguished at a natural gas liquids plant at the at the Shaybah field. President Donald Trump said in a Twitter post the U.S. is “doing very well with China, and talking!” after his top economic adviser said recent phone calls between U.S. and Chinese trade negotiators had been “positive.”

The Iranian supertanker detained last month on suspicion of hauling oil to Syria in violation of European sanctions set sail from Gibraltar waters after being released by the British territory.

Oil explorers picked up drilling activity in American fields for the first time in almost two months, according to data released Friday by oilfield-services provider Baker Hughes.

Bets on a West Texas Intermediate crude rally jumped 13% in the week ended Aug. 13 -- the day the U.S. president surprised financial markets with a pause in the trade war with China, according to data released Friday.

WTI crude for Sept. delivery, which will expire on Tuesday, rose as much as 29c to $55.16/bbl on Nymex and trades at $55.11 at 8:06am in Tokyo.

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